CEPRES today released a unique analysis that demonstrates Private Equity Investing, is enhancing value in operating companies. By analyzing thousands of PE-backed Operating Companies, CEPRES found that since the Global Financial Crisis (GFC) there has been a steady and significant increase in Average Compound Annual Growth Rate (CAGR) of EBITDA for PE-backed Companies. Further, CEPRES found that increase in valuation of companies post GFC is driven more by EBITDA Growth than prior years.
Dr. Daniel Schmidt, CEO comments: “There has been significant speculation about the role of private equity managers as activist investors and whether they actually create value. Now, for the first time ever, we have hard evidence for investors (LPs) and fund managers (GPs) to benchmark their investee companies. It is positive to see such a clear trend and to have the ability to measure and compare these results when investing in private equity. There can be variations for different strategies, sectors, etc. and we encourage participants to get in touch for specific samples.”